If a Monopolist Were to Produce in the Inelastic Segment

question 88

Multiple Choice

If a monopolist were to produce in the inelastic segment of its demand curve

• A) total revenue would be at a maximum.
• B) total revenue would be at a minimum.
• C) the firm would maximize profits.
• D) a further drop in the price will change quantity demanded less than proportionately.

---

Definitions:

Price Levels

The average of current prices across the entire spectrum of goods and services produced in the economy.

Large Chains

Corporations or enterprises that operate multiple retail or service outlets across different locations, often nationwide or globally.

Small Business Owners

Individuals who own and operate businesses that are smaller in scale in terms of revenue, employees, and operations.

Wider Selection

A broader array of choices or options available in a specific context, such as products, services, or goods.